Adani Group’s ambitious Dharavi slum redevelopment project, a joint venture with significant revenue potential, is encountering challenges in securing the necessary land for the rehabilitation of residents, posing a potential setback to one of Mumbai’s largest urban renewal initiatives.
The project, awarded to Adani Properties in November 2022 after a competitive bidding process, aims to revitalise the sprawling Dharavi slum, strategically located near the bustling Bandra-Kurla Complex (BKC) business district. Despite the project’s estimated revenue potential of ₹20,000 crore, the venture is struggling to secure land essential for relocating approximately 7 lakh residents deemed ineligible for free housing under the scheme. According to a spokesperson for the Dharavi Redevelopment Authority (DRA), the Adani joint venture has applied for additional land from various local and federal agencies but has yet to secure any, as these agencies have their own development plans and are reluctant to relinquish their landholdings.
Under the project’s framework, only residents who have lived in Dharavi since before January 1, 2000, will receive free homes. The challenge lies in accommodating those who arrived after this cut-off, many of whom are excluded from the free housing provision and must be housed elsewhere in Mumbai. The project Is structured so that the land remains under the control of Maharashtra government departments, rather than being transferred to Adani Group. The group’s role as project developer is limited to constructing the necessary housing and commercial units, which will then be handed over to the Dharavi Redevelopment Project/Slum Rehabilitation Authority (DRP/SRA) for allocation based on official surveys.
To address the complexities of the redevelopment, the project stipulates that all qualifying tenement holders will be offered upgraded homes, with residential flats measuring 350 square feet—17 percent larger than those typically provided in other Slum Rehabilitation Authority (SRA) schemes in Mumbai. The plan also includes 10 years of free maintenance and the integration of 10 percent commercial space within residential premises, aimed at ensuring sustainable revenue for the housing societies.
Furthermore, eligible businesses operating within Dharavi will be allocated free business premises and granted a five-year state GST rebate to enhance profitability and integrate these enterprises into the formal economy. This is intended to boost competitiveness and create growth opportunities, which are crucial for the long-term success of the redevelopment project. The project’s progress is now at risk due to the land acquisition challenges, which could delay the rehabilitation of Dharavi’s residents and complicate the execution of this large-scale urban renewal initiative.
The Adani Group, having secured the project through an international bidding process, now faces the critical task of overcoming these obstacles to realise the ambitious vision of transforming Dharavi into a modern urban enclave. As the project evolves, the effectiveness of the collaboration between Adani Group and the Maharashtra government, as well as the support from local and federal agencies, will be key to determining the project’s ultimate success.
